Azure says Indonesia battery investment remains on track despite investor concerns
Wednesday, August 5 2026 - 07:25 AM WIB
By Dominikus
China's Jiangsu Azure Lithium Core said its planned lithium battery investment in Indonesia is progressing as scheduled, responding to investor concerns over the risks of investing in the country and market speculation that the project had been abandoned, according to responses published on IRM CNINFO on Tuesday.
The clarification came after an investor asked whether market rumours that the company had terminated its Indonesian investment plan were true.
“The company’s lithium battery project in Indonesia is progressing normally,” Azure said.
The company stressed, however, that the overseas investment still requires filings or approvals from Chinese authorities responsible for commerce, development and reform, foreign exchange administration and other relevant matters.
Azure said further developments would be announced through the company’s official information disclosures.
The response indicates that the project remains at the investment planning and regulatory approval stage, rather than the construction stage.
Another investor questioned why the company intended to invest in Indonesia and urged it to learn from the difficulties faced by Chinese companies involved in nickel mining projects in the country.
Azure responded that its overseas investment projects were subject to supervision by relevant Chinese government authorities and were also protected by those authorities.
A separate investor called on the company to suspend the Indonesian investment as soon as possible to help stabilise its share price.
The company gave a similar response, reiterating that overseas investment projects must undergo regulatory filing or approval procedures and remain under the supervision and protection of relevant government departments.
Azure announced in July that it planned to invest US$290 million in a cylindrical lithium-ion battery manufacturing project in Indonesia with a proposed annual capacity of 5 GWh.
The planned facility would produce 21700 and other cylindrical lithium battery models. The project would be implemented through a wholly owned subsidiary to be established in Hong Kong, which would then establish another wholly owned subsidiary in Indonesia.
The investment was approved by Azure’s board on July 8 but still requires shareholder approval. The company has also not yet signed an investment agreement with relevant parties.
In addition to Chinese regulatory procedures, the investment requires approvals from relevant Indonesian authorities. Azure has warned that the project timeline could be affected by local laws, government policies, the business environment, international trade conditions, geopolitical developments and economic conditions.
The company also cautioned that the project could face delays if regulatory approvals are not obtained, funding is not provided on schedule or investment returns fall below expectations.
Editing by Reiner Simanjuntak